Deutsche Lufthansa Ag · XETR:LHA
Deutsche Lufthansa — Merger or Acquisition (July 2024)
11 slides from Deutsche Lufthansa's merger presentation, Jul 5, 2024
Slide 1: ITA Airways @ LUFTHANSA GROUP
ITA Airways @ LUFTHANSA GROUP July 05, 2024
Slide 2: ITA Airways @ LUFTHANSA GROUP
ITA Airways @ LUFTHANSA GROUP Carsten Spohr, CEO July 05, 2024
Slide 3: Attractive transaction rationale for LHG: ITA, Italy, and Rome FCO
EU Commission’s ITA deal approval | Attractive transaction rationale for LHG: ITA as a company, Italy as a market, and Rome FCO as a 5 Star hub LHG Italy Attractive investment case, Most important broader access to LHG market Italian market and outside our home Rome FCO resources markets and US ITA
Slide 4: Remedy package addresses concerns of the European Commission
Remedy Package | Remedy package addresses concerns of the European Commission while maintaining economic feasibility of the deal Concerns of EU Commission Remedies Overlaps on ‘neighborhood’ traffic New competitor (short-haul remedy taker) ➢ Transaction security: Closing and Short-Haul between Italy
Slide 5: Multi-Hub, -Brand & -AOC strategy
Multi-Hub, -Brand & -AOC strategy | The ITA acquisition is an extension of our strategy that made Lufthansa Group Europe’s leading airline group Customer centricity ▪ ITA is a strong local brand with maximum identification ▪ New travel options for customers by offering connections via Rome 13 Intern
Slide 6: Integration: Plug and Play system enables fast integration
Integration | Plug and Play system enables fast integration into group ITA Integration LUFTHANSA GROUP Steering Synergies and standards „One kitchen“ functions Sales & Network IT (Digital Fleet ▪ Large LHG team with revenue planning Delivery etc.) management dedicated experts ramped management up …
Slide 7: ITA Synergies: Largest part implemented prior to full consolidation
ITA Synergies | Largest part of synergies can be implemented prior to full consolidation After full consolidation 100% Central aircraft Technical fleet Step 2: Financing of synergies ownership management & MRO Majority shareholding after option exercise Step 1: 2026 - 2027 Minority shareholding Star
Slide 8: Investment in ITA Airways will be value accretive for all stakeholders
Key investment highlights | Investment in ITA Airways will be value accretive for all our stakeholders Enhanced connectivity Expanded career paths Attractive investment case +++ +++ +++ Improved customer experience Improved learning opportunities Profitability and synergy trajectory in place +++ +++
Slide 9: Q&A
July 8, 2024 LUFTHANSA GROUP Page 9
Slide 10: Appendix - supplementary information
Appendix - supplementary information- July 5, 2024 Page 10
Slide 11: Deal Overview: Transaction terms minimize the Group's financial risk
Deal Overview | Transaction terms minimize the Group’s financial risk and create optionality ▪ Acquisition of 41% of shares in ITA Airways through a capital increase ▪ Investment into the company’s equity, no payment to Italian Ministry of Economy and Finance (MEF) Key terms ▪ Capital increase of EU
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